Please find attached intimation with respect to issue of shares on preferential issues to shareholders of RRP Drones Innovation Private Limited (Share swap)
Awaiting price reaction for this filing.
RRP Defense Ltd's board approved issuing up to 1,27,45,935 equity shares at Rs. 178 each (face value Rs. 10, premium Rs. 168) on a preferential basis to acquire 100% of RRP Drones Innovation Private Limited through a share swap. Total deal value is approximately Rs. 226.88 crore. Post-acquisition, RRP Drones will become a wholly owned subsidiary of RRP Defense. The acquisition is a related-party transaction since promoters and directors are common to both companies, and the target reported a turnover of about Rs. 14.09 crore in FY24-25. The company's paid-up capital will nearly double from Rs. 13.72 crore to Rs. 26.46 crore after the allotment. Separately, the board noted a proposal to merge RRP S4E Innovation Limited into the company and formed a committee to evaluate the scheme. The corporate office has also been shifted from Gurugram to Navi Mumbai.
Shareholders will see meaningful equity dilution as ~1.27 crore new shares (roughly equal to existing capital) are issued at Rs. 178. The deal consolidates drone business under the listed entity, but being a related-party transaction at promoter-driven terms, it may face scrutiny. Investors should watch the merger committee's recommendation and pricing fairness.